New Plays, Tuesday, 10/09/2007

by James Brown

New Long Plays

Lexmark - LXK - close: 41.06 change: +0.83 stop: 38.95

Company Description:
Lexmark International, Inc. provides businesses and consumers in more than 150
countries with a broad range of printing and imaging products, solutions and
services that help them to be more productive. In 2006, Lexmark reported $5.1
billion in revenue. (source: company press release or website)

Why We Like It:
This should be short-term two-week play. LXK is expected to report earnings on
October 23rd and we do not want to hold over the report. Shares have built what
appears to be a significant bottom over the last couple of months. The recent
breakout over resistance at $40.00 is bullish and LXK has managed to hold this
level for several days. We're suggesting bullish positions following today's
bounce from $40.00. Our suggested stop loss is at $38.95 but readers could
probably get away
with a stop loss closer to the $40.00 level. Our short-term
target is the $44.85-45.00 range. FYI: The P&F chart has produced a bullish
reversal with a $52 target.

Picked on October 09 at $41.06
Change since picked: + 0.00
Earnings Date 10/23/07 (confirmed)
Average Daily Volume: 2.1 million

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Knight Capital - NITE - cls: 13.01 change: +0.39 stop: 12.45

Company Description:
Knight Capital Group, Inc. is a leading financial services firm that provides
voice and electronic access to the capital markets across multiple asset classes
for buy-side, sell-side and corporate clients, and asset management for
institutions and private clients. (source: company press release or website)

Why We Like It:
The broker-dealer stocks are rebounding and we suspect that the investment
service stocks like NITE will follow them higher. Shares of NITE have already
seen their technical indicators turn bullish. The stock broke through short-term
resistance at $13.00 today. Aggressive traders may want to go long the stock
now. We want to see a breakout over its 50-dma. We're suggesting a trigger to
buy it at $13.25. If triggered our target is the $14.65-15.00 range. We would
expect some resistance
near $14.00. This is a short-term play and we plan to
exit ahead of the mid October earnings.

Picked on October xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 10/18/07 (unconfirmed)
Average Daily Volume: 2.0 million

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Synalloy Corp. - SYNL - cls: 22.39 change: +1.12 stop: 19.99

Company Description:
Headquartered in Spartanburg, South Carolina, Synalloy Corporation has been in
business since 1945 and employs over 440 people with operations in South
Carolina, North Carolina, Tennessee, and Georgia. The Company is a diverse
manufacturer comprised of two major operating segments: metals and chemicals.
(source: company press release or website)

Why We Like It:
It looks like SYNL has turned the corner and reversed back into a bullish
posture. The stock has produced a bullish double-bottom pattern with the lows in
August and September. The late September breakout over resistance at $20.00 was
pretty impressive. Traders bought the dip near $20.00 as the stock retested old
resistance as new support. Our biggest risk that we can see is the lack of an
earnings report. We just can't find any sort of report date for its upcoming
third quarter earnings.
Without a report date to avoid holding over earnings we
have to label this a high-risk play. We do want to note that the P&F chart has
produced a spread triple-top breakout buy signal with a $34 target. Plus, SYNL
has a relatively high degree of short interest, which could fuel the rallies.
We're suggesting positions now. There is potential resistance near $25.00 but
our target is the $27.00-28.00 range near its 200-dma.

Company Description:
World Acceptance Corporation is one of the largest small-loan consumer finance
companies, operating 811 offices in eleven states and Mexico. It is also the
parent company of ParaData Financial Systems, a provider of computer software
solutions for the consumer finance industry. (source: company press release or
website)

Why We Like It:
WRLD is recovering from its July 2007 sell-off. The stock is building on a
bullish pattern of higher lows. More recently WRLD has been consolidating the
mid September rally but this consolidation looks like it's about to end. Traders
have been buying dips in the $32.50 zone. We're suggesting a stop loss at
$31.99. The P&F chart points to a $46 target. We're aiming for the $37.25-38.00
range. We only have two weeks and plan to exit ahead of the October 23rd
earnings report.